Western Alliance Bancorp stock set to suffer record selloff of over 60% to 10-year low in wake of SVB collapse

Shares of Western Alliance Bancorp
WAL,
-74.87%
took a 62.4% plunge toward a 10-year low in premarket trading Monday, adding to last week’s tumble in the wake of the collapse of SVB Financial Group’s
SIVB,

Silicon Valley Bank. The Arizona-based bank stock’s selloff was set to surpass the record one-day drop of 39.4% suffered on Sept. 19, 2008, in the midst of the financial crisis. The stock has plummeted 31.1% the past two days, even after the bank tried to reassure investors by saying Friday that “deposits remain strong” and “liquidity remains robust.” The bank said it had $61.5 billion in deposits as of March 9 and $2.5 billion in cash held on its balance sheet. Western Alliance had a market capitalization of $5.41 billion as of Friday’s close. The stock, which was on track to open at the lowest price seen since September 2013, has lost 17.2% year to date through Friday, while the SPDR S&P Regional Banking exchange-traded fund
KRE,
-12.98%
has shed 13.7% and the S&P 500
SPX,
-1.13%
has tacked on 0.6%.